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IT ALWAYS SEEMS IMPOSSIBLE - Transnet · NELSON MANDELA 1918 - 2013. With the discovery of the rare gems in the Cape Colony and ... Engineering National Ports Authority Port Terminals

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Page 1: IT ALWAYS SEEMS IMPOSSIBLE - Transnet · NELSON MANDELA 1918 - 2013. With the discovery of the rare gems in the Cape Colony and ... Engineering National Ports Authority Port Terminals
Page 2: IT ALWAYS SEEMS IMPOSSIBLE - Transnet · NELSON MANDELA 1918 - 2013. With the discovery of the rare gems in the Cape Colony and ... Engineering National Ports Authority Port Terminals
Page 3: IT ALWAYS SEEMS IMPOSSIBLE - Transnet · NELSON MANDELA 1918 - 2013. With the discovery of the rare gems in the Cape Colony and ... Engineering National Ports Authority Port Terminals

IT ALWAYS SEEMS IMPOSSIBLE

UNTIL IT’S DONENELSON MANDELA

1918 - 2013

Page 4: IT ALWAYS SEEMS IMPOSSIBLE - Transnet · NELSON MANDELA 1918 - 2013. With the discovery of the rare gems in the Cape Colony and ... Engineering National Ports Authority Port Terminals

With the discovery of the rare gems in the Cape Colony and the yellow precious metal on the Transvaal Witwatersrand in the late nineteenth century, South Africa became a magnet to thousands of prospectors keen to make their fortune. Within years, the country’s ports opened up to global trade and railways opened up the interior.

The country’s harbour infrastructure grew over the continuing decades and centuries, with sailing ships making way for the first container ships. Today, new Panamax and Post-Panamax vessels operated by multinational shipping lines are seen tying up at our quays.

OUR TRADE BEGAN WITH GOLD AND DIAMONDS…

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Page 5: IT ALWAYS SEEMS IMPOSSIBLE - Transnet · NELSON MANDELA 1918 - 2013. With the discovery of the rare gems in the Cape Colony and ... Engineering National Ports Authority Port Terminals

We currently manage handling operations for the container, bulk, break bulk and automotive sectors. Plans are underway for Transnet Port Terminals to further diversify into other commodity handling such as liquid bulk.

Cargo handling, storage and value-add services are also provided to a wide spectrum of customers in shipping, manufacturing, mining, agriculture and fisheries, telecommunications, energy, wholesale and the retail trade. These services include stuffing and de-stuffing of containers, supply chain solutions for mining commodities, data-dotting, fitment of radios and tow bars in the automotive sector, provision of container empty top-up stacks and soon to launch - pre-tripping and inspection facilities. Heavy lift import and export project cargoes are also handled across most of our terminals. This service is supported by the most technologically advanced quayside

mobile cranes, capable of lifting up to a maximum of one hundred tonnes.

Over 7 000 multi-skilled and competent people work for Transnet Port Terminals. Through our continuous investment in people, infrastructure and equipment, and regular stakeholder engagement, the company offers a superior service often benchmarked against the best operators in the world. We also have the flexibility to customise our service offering to the customer where practical. To further grow our operations while raising our current level of efficiencies, Transnet Port Terminals’ most recent focus is to grow into the supply chain. We are also extending our operations beyond South African borders into Africa. To support this we continue to acquire and

develop facilities to enable back of port operations. These include: • Handling and storage of cleared and uncleared full

containers• Supply chain solutions for mining commodities• Handling, storage, washing and repairs of empty general

purpose containers• Pre-tripping and inspection facilities• Unpacking of containers and loading onto car carriers• Packing of export containers (minerals, timber etc.)

There is no doubt that what we do and how we do it has a profound influence on the prosperity of our country. Being part of building our nation and contributing to the expansion of our nation’s infrastructure drives us every day.

WHO WE ARE TRANSNET PORT TERMINALS IS SOUTH AFRICA’S LEADING TERMINAL OPERATOR WITH A NETWORK OF 16 CARGO TERMINALS ACROSS SEVEN SOUTH AFRICAN COMMERCIAL PORTS.

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PipelinesFreightRail

Rail Engineering

National PortsAuthority

Port Terminals

PIPELINESPORTSRAIL

TransnetProjects

CorporateCentre

TransnetProperty

SPECIALIST UNITS

TRANSNET COMPANY

OPERATING DIVISIONS

Transnet Port Terminals (TPT) is one of five operating divisions of Transnet SOC Limited, South Africa’s state-owned freight transport and handling company.

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NORTH AMERICA

UNITED KINGDOM

EUROPE

ASIA

AFRICA

2%13%

44%

34%

5%

2%SOUTH AMERICA

EXPORT TRADE ROUTES

HELPING TO BUILD WORLD-CLASS BRANDSThe professional and efficient import and export terminals we operate enable South African businesses to build and maintain world-class brands. Many companies and industries import raw materials, products, ingredients, components or goods from this country, which are used to produce finished goods which are then exported. Examples include the importing of

hops and barley for the production and export of the leading beer brand in the world, and the importing of vehicle components for local car assembly. These cars are then exported across the world.

| 09

NORTH AMERICAEUROPE

ASIA

OCEANIAAFRICA

SOUTH AMERICA

12% 1%

9%

62%15%

1%

IMPORT TRADE ROUTES

08 |

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A bright new era is beginning for Africa. New investment frontiers are there to be discovered and opportunities flourish in a number of its 55 countries. The continent is one of the fastest growing in the world and considered to have the most potential for growth. In a 2013 World Bank Report on the economic outlook for the Southern African region, seven of the 15 countries are expected to experience “rapid growth” in the coming years. Another report states that of the ten fastest growing countries in the world, five are African.

As the country with the most developed port, road and rail infrastructure systems, South Africa is the undisputed gateway to these new markets. Transnet Port Terminals is primed to build on and link into Africa’s growing transport and logistic corridors. Our newest terminal – at Ngqura in the Eastern Cape – has been specifically developed as a container transhipment hub for sub-Saharan Africa. The terminal was named the fastest growing container terminal in the world in 2012 and again in 2013 by Drewry Maritime Research.

Every day, new power generation plants, telecommunication networks, cement factories, shopping malls, mines and infrastructure projects are given the green light in Africa. By applying our expertise and partnering with more companies in more places than ever before, our terminals will continue to be at the forefront of this development revolution.

Our aim at Transnet Port Terminals is to increase our presence in Africa through the provision of operational, technical and information systems advice to other terminals and to facilitate intermodal connectivity for existing and new markets in the Southern African Development Community (SADC) region. We have begun with our intent to operate several terminals on the African continent. NEPAD South Corridor’s plans to link Durban and Dar es Salaam for improved connectivity has motivated this move. One such example would be in Tanzania, which is aiming to be the main regional shipment hub to its neighbouring landlocked countries. Regional cross border integration has been cemented by our sister division, Transnet Freight Rail, which has placed Transnet Port Terminals in a favourable position.

ALL ROADS (AND SHIPPING ROUTES) LEAD TO AFRICA

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6 4I0Employees in 2011/12

to 9 446 in 2018/19From 8.9 mtpa to 11.9 mtpa (33.7% growth)

BREAK BULKR82 BILLION

Over the next seven years, Transnet’s revenue will grow by 187% - an increase of

From 74.0 mtpa to 122.6 mtpa (65.7% growth)

BULK

EXPANSION

7I% of our total investment

will focus on expansion projects

Capital Sustaining Projects - equipment upgrades

Capacity Creating Projects - expansion

70.8%

CO

NTA

INER

S

Growth from 4 305 000 TEU’s to 7 352 000 TEU’s pa

MDS Volume Targets 2011/12 - 2018/19

From 672 536 units to 721 266 units (7.2% growth)

AUTOMOTIVE

The South African Government views the country’s ports and terminals as key engines for economic growth. Transnet SOC Limited therefore embarked on a massive infrastructure drive in April 2012 to boost the economy and create jobs over a seven year period ending in 2019, through its R300 billion Market Demand Strategy (MDS).

The investment is aimed at supporting unconstrained growth mainly in support of the fast and efficient movement of export-oriented commodities. For Transnet Port Terminals, the MDS is largely aimed at building freight capacity to support South Africa’s economic growth and position the country as a regional transhipment hub for sub-Saharan Africa. Over 70% of the capacity will be new or expansion capacity, the remainder will be replacement and maintenance projects.

Through investments in equipment, infrastructure and training of our people, the MDS has given Transnet Port Terminals an unprecedented advantage to accommodate and fully benefit from inevitable future demand. This will see the company’s capital expenditure increase threefold between 2012 and 2019.

The MDS will enable Transnet Port Terminals to be the southern hemisphere’s terminal operator of choice as a result of the capacity creation programmes currently underway at major terminals.

Read more about how our terminals are benefitting from the MDS on pages 33, 34 and 35.

A STRATEGY TO MEET FUTURE DEMAND

10 |

29%

7I%

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The country’s air and rail networks are the largest in Africa, with the rail network ranked as the 14th longest in the world at about 21 000km. This makes the transport sector a key contributor to the country’s competitiveness in global markets. The country’s rail infrastructure which connects the ports with the rest of South Africa represents about 80% of Africa’s total.

Transnet’s rail strategy emphasises the need for rail to be the backbone for long distance heavy load freight volumes. Greater tonnages of traffic conveyed by rail would make a significant contribution to reducing the cost of doing business in South Africa. This is an integrated approach in line with the current development at some of our terminals where newly acquired equipment and infrastructure upgrades complement the increased volumes anticipated through moving goods from road to rail.

All our terminals have well-developed infrastructure to load or offload cargo from trucks or train wagons and service calling vessels of varying sizes.

It is Transnet Port Terminals’ strategy to grow in the supply chain to create greater value for our customers. With existing TFR (Transnet Freight Rail) routes already extending cross-border into Africa, we are well positioned to utilise these existing alliances.

UNRIVALLED INFRASTRUCTURE

Percent of South Africa’s exports are sea-bound96

SOUTH AFRICA HAS A MODERN AND WELL-DEVELOPED TRANSPORT INFRASTRUCTURE.

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A WORLD-CLASS WORKFORCE

As a result of our mobile training clinic, container crane simulators, international work exposure, and training through the Transnet Maritime School of Excellence, our workforce is of a very high calibre.

The Maritime School of Excellence offers extensive terminal-related training and through its international networks ensures all its service offerings remain abreast with international best practice. The capacity building department is responsible for the development of the technical skills in TPT to ensure excellence and world-class practices when maintaining the high technological equipment in use at our terminals. The department has conducted detailed competency profiles that clearly outline the training requirements for key technical positions and are managing the training from a central position to ensure the optimum development of all staff across the terminals.

Talent management is key to the successful skill levels and deployment of our workforce. It includes the proactive identification, planning, attraction, development, retention and monitoring of both the supply and demand of critical positions and key talent. Its purpose is to ensure operational continuity by ensuring that the right people, with the right skills, are in the right role at the right time to ensure successful business results for both the company and our customers.

In our multipurpose terminals, our employees are trained to operate a variety of equipment used for loading and off-loading different types of commodities.

Training goes beyond our employees, as we consider our suppliers to be an extension of our business. Aided by the government’s broad-based black economic empowerment policy, we also have supplier development programs across our network of terminals. These aim to ensure quality at all times, convenience to the customer, and timeous delivery of required goods and services.

To keep our workforce inspired and motivated, we have a recognition and rewards programme. In addition our workforce ascribe to our values: employee wellbeing, openness and honesty, innovativeness, customer focus, accountability, speed of delivery and growing our business.

AT TRANSNET PORT TERMINALS WE HAVE LONG BELIEVED THAT OUR STAFF ARE OUR GREATEST ASSETS.

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Transnet Port Terminals endeavours to enhance the competitiveness of our customers in order to maximise the growth potential of our business.

Our main focus is to facilitate trade and reduce the cost of doing business. Driving efficiencies, reducing downtime, and maximising capacity are fundamental in every aspect of the business so that we retain and improve our standards. In recent years, we have re-engineered our operations to create efficiencies and targets that are in line with customer expectations. Throughout our terminals we host joint collaboration with customers and key stakeholders to better understand their needs and expectations.

Centralised Customer Service CentreOur centralised Customer Service Centre is a call centre that supports all our terminals as a single point of contact to facilitate communication and customer service. Similarly, a Planning Centre with a virtual view of all terminal quaysides now exists at our headquarters in Durban – providing the link with Operations and Commercial to the benefit of the customer as the set up resolves any arising operational challenges.

Customer Focused OperationsOur clients come from a vast array of industries and our customers include the leading shipping lines in the world – some 37 shipping lines call at our terminals. Customer satisfaction indices are conducted during monthly Service Level Agreement sessions between customers and our Commercial and Planning teams. Customers use our cargo handling services because our services, equipment and infrastructure are safe, efficient and reliable.

We meet regularly with shipping industry associations who represent shipping agents, freight forwarders, cargo agents and vehicle manufacturers. These include, amongst others: the South African Association of Ship Operators and Agents (SAASOA); the South African Association of Freight Forwarders (SAAFF); the South African Shippers Council (SASC); the Container Liner Operations Forum (CLOF), the Bulk Liner Operator Forum (BLOF) and the National Association of Automobile Manufacturers of South Africa (NAAMSA).

CUSTOMER VALUE CREATION

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The Transnet Port Terminals App A recent innovation is the Transnet Port Terminals app, which allows the user to track their cargo, gain instant information on live berth plans and important terminal updates across our network of terminals countrywide. The app, identified as Transnet TPT, is available for free in both the Google Play store and the App Store.

General Cargo Operational System 3 (GCOS3)Developed internally at Transnet Port Terminals for tracking break bulk cargo and the automotive operation, the General Cargo Operational System (GCOS) is a comprehensive system that facilitates the terminals’ administrative and operational processes. GCOS3 is a new web-based version of the popular and comprehensive cargo operations system that is in use at our automotive and break bulk terminals. The benefits of GCOS3 are an improved, simpler user interface, greater efficiency, enhanced security, greater data integrity and better governance.

Navis We were the first globally to use Navis and currently have the world’s largest multi-facility system running the Navis Sparcs N4 Terminal Operating System.

Through Navis, our Durban Container Terminal: Pier 2 has been able to innovate to use the Rail Dual Cycle method of operation. This allows the Rail Operation to maximise the use of terminal trucks, straddles and rail mounted gantries (RMGs) by enabling them to run loaded at all times, thereby improving loading and discharge times and increasing GCH productivity.

Continuous ImprovementThe company has a dedicated Continuous Improvement Department. Innovation and continuous improvement are approaches that give strength and resilience to an organisation. Through these approaches, we empower management to have a creative role in ensuring that individuals, the team and the organisation gain from change and that the customer benefits through improved products and services. These approaches stimulate people to come up with new and innovative ideas. Teams are proactive in implementing improvements, rather than just being reactive in inspecting and fixing what doesn’t work.

Our value proposition is to reduce the cost of handling cargo as well as to reduce vessel and train turnaround time.

Transnet Port Terminals prides itself on its culture of innovation. We have teams within each terminal who hold monthly forums where new ideas are discussed and tabled by its members, and any other individual from the workforce who has an idea to contribute. Successfully implemented ideas that bring real value to the business find their creators well rewarded and recognised by the company.

“INNOVATION IS CHANGE THAT UNLOCKS NEW VALUE”

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Page 11: IT ALWAYS SEEMS IMPOSSIBLE - Transnet · NELSON MANDELA 1918 - 2013. With the discovery of the rare gems in the Cape Colony and ... Engineering National Ports Authority Port Terminals

In order to provide efficient loading, unloading,transhipment, temporary storage and terminal services toour customers, Transnet Port Terminals’ safety objectivesare characterised by the promotion of value-drivenbehaviour and proactive leadership. We have transformedsafety management into a dynamic risk-based modelthat integrates safety and operations for progressivebehaviours across our terminals.

Transnet Port Terminals subscribes and complies withindustry best practice in the areas of Operational Safety,Health, Environment and Quality (SHEQ) managementsystems. We continue to benchmark ourselves against bestpractices using International Standards Organization (ISO)benchmarks. To this end, all Transnet Port Terminals areNOSA Graded, ISO 9001 certified, ISO 14001 certified and OHSAS 18001 certified.

Our automotive terminals in Durban and East London wereaudited by NOSA and were graded as NOSCAR terminals (the score achieved is more than 95%).

Transnet Port Terminals was hailed the overallwinner in the Transport Safety category at the TransportAfrica Awards held in Johannesburg.

A safety mindset is instilled in our employees via our safetyculture programme. The programme takes the form of asoccer league. Our terminals and teams compete againsteach other with the aim of achieving the highest standardsin terms of safety to establish a process of behavioural safety management within terminals.

Through the implementation of OHSAS 18001, TPT has ensured a world-class health programme facilitated through strategically placed clinics within operations.

Africa Ports and Harbours rated TPT as the Safest TerminalOperation on the African continent in 2012/13.

SAFETY, HEALTH, ENVIRONMENT AND QUALITY FOCUS

Sustainability Reporting TPT subscribes to the Global Reporting Initiative (GRI). The GRI is a leading organisation in the sustainability field. It promotes the use of sustainability reporting as a way for organisations to become more sustainable and contribute to sustainable development.

The aim of utilising the GRI framework is to make sustainability reporting standard practice for all terminals. Its framework is a reporting system that provides metrics and methods for measuring and reporting sustainability-related impacts and performance which is embraced by TPT in the Transnet annual report.

Environmental Management SystemsWe have a well-entrenched environmental philosophy andthe appropriate structures in place to support this important initiative. The internationally recognised ISO 14001 system is in place in each of our terminals around the country.

We have an extensive air and ground water and water quality monitoring network and we track our performance through a non-conformance process. We have Atmospheric

Emissions Licences for our bulk mineral cargo handlingterminals where required. We are committed to ensuring that any impacts we may have on neighbouring communities are identified and mitigated.

Resource ConservationEnergy savings opportunities are being identifiedthroughout our organisation with monthly monitoring andmeasurement of all resources being undertaken to identifypossible improvements. Most of our buildings utilise motion detectors to automatically turn off lights in areas which are not occupied. Energy-efficient office and high-mast lighting as well as heat pumps and solar panels for water heating are being pursued to ensure controlled energy use. Our energy targets ensure that the company remains within a tight performance target.

Implementation of the ISO 50001 Energy ManagementSystem is planned over the next few years to furthermanage energy usage and reduce our carbon footprint. The carbon footprint is monitored monthly with the evaluation of emissions linked to volumes handled.

SUSTAINABILITYSustainability is a key performance driver within our business. We continuously strive to improve and regularly track our performance against our targets.

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Page 12: IT ALWAYS SEEMS IMPOSSIBLE - Transnet · NELSON MANDELA 1918 - 2013. With the discovery of the rare gems in the Cape Colony and ... Engineering National Ports Authority Port Terminals

« The fastest growing container terminal in the world – Ngqura Container Terminal (NCT); Drewry Maritime Research 2012 and 2013. During 2012, NCT’s volumes more than doubled, peaking at 129% year-on-year.

« Winner of the Safety Award at the 2013 Transport Africa Awards. TPT was also shortlisted for the Best African Port Operator Award as well as the Transport Green Award.

« NOSCAR grading for Port Elizabeth and East London car terminals – 2013 NOSA audits. The NOSCAR is the highest safety accolade in the industry. Port Elizabeth and East London Terminals have been NOSCAR-accredited for 4 and 9 years respectively.

« Most moves per hour, highest in Africa (January to March 2013) – Port Elizabeth Container Terminal. Ranking done by Maersk, the world’s largest ocean carrier and container shipping company. Durban Container Terminal was ranked fifth in the same study.

« PMR Africa Awards 2014, TPT was awarded the following:- Companies/Institutions doing most for the empowerment of women- Service Excellence Diamond Arrow Award – Port of Richards Bay- Service Excellence Golden Arrow Award – Port of Durban- Diamond Arrow Award in the category Companies/Institutions doing most for job creation

« Best performing container terminal in Africa – Durban Container Terminal; Container Management Top 120 World Container Terminals Survey 2013. Cape Town Container Terminal was also listed for the first time in 2013.

« Best Success in Africa Award for TPT from CNBC Africa.

« World-class rail dual cycle operation on Navis pioneered by Durban Container Terminal: Pier 2 in March 2013.

« TPT dominates Transnet Internal Audit (TIA) Integrated Governance Awards- Best compliance internal control environment- Leader in fraud risk management environment- Most improved internal control environment

« Level three B-BBEE status for TPT attained in 2014.

OUR ACHIEVEMENTS

20 |

Our operations are divided into four major market sectors: automotive, containers inclusive of specialised transhipments, break bulk and bulk. These products and/or commodities are transformed into products that feature in the lives of men, women and children in South Africa as well as around the world. Transnet Port Terminals is well positioned to trade both gateway cargo and the transhipment market in sub-Saharan Africa, East and West trade.

OUR SECTORS

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Page 13: IT ALWAYS SEEMS IMPOSSIBLE - Transnet · NELSON MANDELA 1918 - 2013. With the discovery of the rare gems in the Cape Colony and ... Engineering National Ports Authority Port Terminals

Happy with your new car? As many as 39 749 vehicles have moved through one of our RoRo terminals in a single month.

22 |

South Africa’s automotive industry is a global, turbo-charged engine for the manufacture and export of vehicles and components. Many of the major multinational firms use South Africa to source components and assemble vehicles for the local and international markets.

Transnet Port Terminals’ RoRo (roll on/roll off) facilities are combination/multi-service terminals which handle a variety of cargo driven onto and off the vessel, requiring minimal use of quayside equipment. Our RoRo terminals are an integral part of the supply chain for cars built and exported from South Africa – a major industry that sustains many jobs in the country.

In South Africa, the automotive industry makes up about 7% of the gross domestic product and accounts for almost 12% of the country’s manufacturing exports. Transnet Port Terminals currently moves about 817 000 fully built units annually through its Durban, East London and Port Elizabeth terminals.

As a company, we work very closely with our customers to be an extension of their company. For instance, for one car manufacturer based in East London, there is a dedicated bridge built directly into the terminal’s undercover parking bays. One of Africa’s leading car manufacturing plants is in close proximity to our Durban RoRo Terminal, and is serviced via a direct train that moves a batch of cars from the plant to our terminal each day after production.

Automotive companies with production plants in South Africa are well-placed to take advantage of the low production costs, coupled with access to new markets as a result of trade agreements with the European Union and the Southern African Development Community free trade area. Opportunities also lie in the production of materials (automotive steel and components) where Transnet Port Terminals is geared up to take on increasing volumes.

AUTOMOTIVELOCATION ANNUAL CAPACITY

Durban RoRo 520 000 FBUs

East London 139 000 FBUs

Port Elizabeth (RoRo) 158 000 FBUs

The total capacity of FBUsfor all terminals in this sector

817 000

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Page 14: IT ALWAYS SEEMS IMPOSSIBLE - Transnet · NELSON MANDELA 1918 - 2013. With the discovery of the rare gems in the Cape Colony and ... Engineering National Ports Authority Port Terminals

The container industry represents approximately two-thirds of the value of total global trade which equates to more than US$ 4 trillion worth of goods each year, according to an IHS Global Insight report.

It is said that before American trucking magnate Malcom McLean invented uniform metal containers in 1956, goods were crammed into the hold of a vessel, or packed into a wooden crate that would be loaded or unloaded off a vessel. This process was unreliable, expensive and so slow that ships spent more time docked than they did at sea.

As a terminal operator, we have invested extensively in infrastructure, technology, human resources, supply chain efficiencies and equipment across our network of container terminals. Equipment purchased includes tandem lift ship-to-shore cranes, RTGs, RMGs, straddle carriers, trailers, additional refrigerated container plug points, haulers, reach stackers, and empty container handlers. A further initiative is the support of the Transnet Value Chain Coordination or TVCC. The TVCC comprises a group of assigned executives and managers from across all the companies within the Transnet Group who strategise methods of integrating all aspects of the business to maximise delivery of service to the customer. Reliability of service, enabling growth of the customer’s business, and creating a culture of continuous improvement have all been identified as areas for immediate and on-going focus. By looking at how we can optimise our business processes, increase the use of

CONTAINERS

The vast majority of consumer goods that fill our homes came into the country inside a 40 x 20 foot container.

24 |

LOCATION ANNUAL CAPACITY

Durban (Pier1) 0.7 TEUs

Durban (Pier2) 2.9 TEUs

Cape Town 1.4 TEUs

Port Elizabeth 0.4 TEUs

Ngqura 2.0 TEUs

TEU’s in millions

rail throughout our operations, and integrate our country’s terminals better with the rest of the continent, Transnet Port Terminals aims to offer increased customer value, drive loyalty and promote sustainable growth.

The upgrading of our container planning system NAVIS continues to provide a reliable and unified operating system for all our terminals. Transnet Port Terminals uses the NAVIS SPARCS N4 system for container management and to provide a cargo tracking service to customers and management. NAVIS allows customers to book and track their cargo in ten marine container facilities and one inland rail facility across South Africa.

Capacity creation projects are currently in progress to ensure readiness for forecasted upward trends for the years ahead. The R5.4 billion Cape Town Container Terminal upgrade is well underway to increase capacity to 1.4 million TEUs, the number of berths from two to four, and deepen berths to 15.5 metres while extending them by 10 metres into the bay. Reefer points will total 3 783 on completion.

The Ngqura Container Terminal’s (NCT) R1.1 billion upgrade is also tracking according to plan with two new additional ship-to-shore cranes and 18 RTGs with supporting trailers now fully commissioned. NCT is also equipped for a third berth operation that will increase capacity to 2.0 million TEUs. NCT has been positioned as a transhipment hub receiving support from terminals at Port Elizabeth, Cape

Town, Richards Bay and Durban. The terminal is located adjacent to the Coega special economic zone, providing great opportunities for back of port operations.

The Durban Container Terminals’ recently acquired seven new-generation cranes are capable of carrying four twenty-foot containers in tandem. Berth 108 and 109 and their stacking areas have undergone maintenance with an implementation plan formulated with the aim of minimising congestion by diverting traffic to nearby Durban terminals. The deepening of the three berths on the North Quay is also in the planning process.

The Port Elizabeth Container Terminal is well established and enjoys close proximity to the industrial hub of the city. The terminal features reliable equipment and two additional new-generation ship-to-shore cranes. With a capacity of 400 000 TEUs, over 800 reefer points and 3 600 ground slots of stacking capacity, the terminal is well placed to take advantage of its advanced road and rail infrastructure.

Our terminals play an important role in the container supply chain. As such, we have introduced a number of value-add services into the container sector including stuffing and de-stuffing of containers, and the provision of container empty top-up stacks. In the near future we will launch pre-tripping and inspection facilities. The total combined capacity in TEUs

for all terminals in this sector

7.4 million

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The huge arch of the Moses Mabida Stadium took its shape from the South African flag. It also symbolises the coming together of the South African people.

26 |

Our break bulk terminals have played a vital role in the economic and developmental success of our country. Many of the materials used in the construction of the 2010 FIFA World Cup stadiums were imported through our terminals. All ten stadiums that were rebuilt or renovated in Cape Town, Durban, Port Elizabeth, Nelspruit, Johannesburg, Pretoria, Bloemfontein, Rustenburg and Polokwane received the imported materials used in their construction through our terminals across the three regions in which we operate.

Similarly, project cargo, abnormal and heavy lift cargo like transformers required in energy plants and in the construction of power stations are received via our terminals. The successful construction of the Gautrain, Africa’s first world-class, modern rapid rail and bus service for Gauteng, was achieved using materials transported through our terminals. Windmills and wind turbines used in the agricultural sector are also classified as heavy lift cargo and are handled at our terminals.

As a continent, Africa is becoming one of the world’s top project cargo and heavy-lift cargo markets. Its accelerating foreign investment is creating massive energy and infrastructure projects, with our terminals providing the only hubs in Southern Africa with facilities large enough to handle components of this nature.

At Transnet Port Terminals, break bulk terminals caterfor an array of cargo including neo-bulk, unitised and non-unitised. These commodities are handled at our multi-purpose terminals: Durban RoRo, Maydon Wharf, East London, Cape Town, Saldanha, Richards Bay and Port Elizabeth.

BREAK BULK

6.31 millionThe total capacity in tonnes per

annum for all terminals in this sector

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LOCATION ANNUAL CAPACITY

Durban RoRo 0.4 mtpa

Durban Maydon Wharf 1.2 mtpa

East London 0.21 mtpa

Cape Town 1.5 mtpa

Saldanha 3.0 mtpa

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Iron ore, one of the major bulk cargoes we handle, is used to make steel, integral to the global economy.

28 |

Mineral cargo represents the biggest market for Transnet Port Terminals and we are a key player in the success of the sector.

Our terminals at Richards Bay, Saldanha and Port Elizabeth handle a large portion of South Africa’s bulk minerals. These major bulk cargoes include iron ore, manganese, magnetite and chrome ore and other similar cargo shipped in bulk. Such raw materials are used to create products that help us to maintain the modern lifestyles we have become accustomed to.

To support the South African economy and world trends, as well as the growth of emerging miners in this country, recent Transnet Port Terminals investments have included the purchase of sophisticated bulk handling equipment.

In our Richards Bay terminal – a terminal that handles over 15 different bulk commodities – over R600 million has

been invested to create additional stockpile areas. Africa’s largest iron ore export facility, Saldanha Bulk Terminal, is creating additional capacity to take it from 60 million tonnes to 82 million tonnes by 2019. The Port Elizabeth Terminal is the largest manganese export facility in Africa. The terminal introduced a number of innovative handling methods to facilitate the growth of emerging miners and to improve capacities including the successful handling of skiptainer vessels.

LOCATION ANNUAL CAPACITY

Richards Bay 20 mtpa

Saldanha 60 mtpa

Port Elizabeth 5.1 mtpa

MINERAL CARGO

BULK

The estimated capacity in tonnes per annum of mineral cargo that is handled through our terminals

85.1 million

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Page 17: IT ALWAYS SEEMS IMPOSSIBLE - Transnet · NELSON MANDELA 1918 - 2013. With the discovery of the rare gems in the Cape Colony and ... Engineering National Ports Authority Port Terminals

TRANSNET PORTTERMINALSWHERE TO FIND US

CONTAINERS

BREAK BULK

AUTOMOTIVE

MINERAL BULK

AGRICULTURAL BULK

5 EAST LONDON

9 RICHARDS BAY

678 DURBAN RORO

DURBAN CONTAINER

MAYDON WHARF

4 NGQURA

3 PORT ELIZABETH

1 SALDANHA

2 CAPE TOWN

Agricultural bulk exports are also vital to the South African economy. Wheat, maize, malt, rice, soya bean meal, animal feed and woodchips are handled at Maydon Wharf, Richards Bay, East London and Durban Container Terminal. At our Cape Town Terminal fresh produce is handled by containers and conventionally our infrastructure there boasts silo and flatstore. In this sector we provide storage, inventory control and material blending as part of our bulk material handling system. Innovations are seen as the sector’s best opportunity for growth and are an area of focus for us.

AGRICULTURAL BULK

LOCATION ANNUAL CAPACITY

Durban Maydon Wharf 1.4 mtpa

East London 0.76 mtpa

Cape Town 1.5 mtpa

The total capacity in tonnes per annum for all terminals in this sector

3.66 million

Wheat is one of the many commodities handled by our Agri Bulk Terminals. 70-80% of all flour produced is used for bread baking.

| 31 | 3230 |

Page 18: IT ALWAYS SEEMS IMPOSSIBLE - Transnet · NELSON MANDELA 1918 - 2013. With the discovery of the rare gems in the Cape Colony and ... Engineering National Ports Authority Port Terminals

Commodity: ContainersThe Ngqura Container Terminal (NCT) has been designed as a state-of-the-art transhipment hub, servicing traffic from the East, South America, and West African markets. The deepest container terminal in Southern Africa, boasting a 16 metre draft, NCT has seen a steady improvement in volume growth and operational performance.

Did you know? The terminal employs just over 500 employees, with room for an additional 500 jobs after the Ngqura Expansion Project is complete. About 98% of these jobs will be sourced from the Eastern Cape.

Market Demand Strategy (MDS) investment• 48 haulers and trailers• 4 Ship-to-Shore cranes• 18 RTGs

NGQURA TERMINAL

Commodity: Containers, RoRo, Agri Bulk, Break BulkBillions have been invested in Transnet Port Terminals Cape Town Terminal in a multi-phased upgrade of which Phase 1 has already been completed. This includes the extending of the quay wall by 10m over the entire 1 137m length of the quay, at a depth of 15.5m. Phase 2 will increase capacity from 1 million TEUs to 1.4 million TEUs. It includes 2 700 additional reefer plug points for a total of 3 752 points. The six new super post panamax ship-to-shore gantry cranes have considerably improved service levels to customer vessels by maintaining a world-class standard of 32 gross crane moves per hour (GCH).

Did you know? Cape Town Container Terminal (CTCT) operations date back to 1977 - facilitating movement of containerised cargo, wine, fruit and white goods to and from the Asian, European, American, Australian and growing East and West African markets.

Market Demand Strategy (MDS) investment• New Ship-to-Shore cranes• Dredging of quay wall to 15.5m • RTGs acquired to replace straddle carriers• Multi-skilling of employees

AGRICULTURAL BULK / RORO CAPACITY

Containers 0.1 TEUs

Agri-bulk 1.5 million tonnes per annum

Break bulk / General cargo 1.5 million tonnes per annum

CONTAINER CAPACITY Current End State

Capacity 0.9m TEUs 1.4m TEUs

Berths 4

Draft 15.5m

CAPE TOWN TERMINAL

Commodity: Mineral Bulk, Break BulkThe largest natural, deep-water port in South Africa, the Saldanha Terminal, has an average draft of 17.5m across its combined 5 berths giving it the ability to accommodate Panamax and Cape-sized vessels. The terminal remains the largest iron ore export facility in Africa loading between 16 to 20 vessels per month.

Did you know? Saldanha is water-scarce and to ensure sufficient fresh water, Transnet Port Terminals invested in a reverse osmosis plant that uses the existing seawater, sifts it of brine and salt for use in dust control management at the terminal.

Market Demand Strategy (MDS) investment• The reverse osmosis plant was commissioned during 2012/2013 • Two shiploaders have been refurbished• Conveyor belt replacement

BULK CAPACITY

Capacity 60 million tonnes per annum

Berths 2

Cargo Iron ore

BREAK BULK CAPACITY

Capacity 3 million tonnes per annum

Berths 3

Cargo Mainly steel, including steel coils, heavy mineral sands, lead and copper concentrate granite

SALDANHA TERMINALCommodity: Automotive and Break BulkDurban RoRo Terminal is South Africa’s largest RoRo terminal and the best equipped in the Southern Hemisphere with a NOSCAR status for the last seven years as well as an “International Top 100 Company” status from the National Occupational Safety Association (NOSA).

Did you know? In February 2013, the terminal set a new record in TPT’s automotive history — handling 39 749 units in a single month.

Market Demand Strategy (MDS) investment• R438 million was recently used in the RoRo terminal’s container facility

to upgrade the terminal handling capacity to 230 000 TEUs• Stack upgrades• New mobile Ship-to-Shore cranes

DURBAN RORO TERMINAL

RORO CAPACITY

Capacity 520 000 (Fully Built Units) FBUs

Berths 3

Cargo New and second hand vehicles, high and heavy cargo

BREAK BULK CAPACITY

Capacity 400 000 tonnes per annum, 230 000 TEUs

Berths 4

Cargo Handles a niche market of container business as well as break bulk (abnormals, steel commodities and project cargo)

8Commodity: Bulk and Break BulkSituated in the northern industrial hub of KwaZulu-Natal and accessible via rail and road, Transnet Port Terminals Richards Bay is currently undergoing expansion. A deep sea water port which boasts 13 berths, the terminal handles dry bulk ore, minerals and break bulk consignments with a draft that easily accommodates Cape size and Panamax vessels.

Did you know? A large percentage of dry bulk commodities are handled via a computer-controlled network of conveyor belts extending 40 kilometres to seven harbour-bound industries. These belts transport cargo between the quayside and the respective manufacturers.

Market Demand Strategy (MDS) investment• Purchase of new Ship-to-Shore cranes• Refurbishment of the tipplers for offloading of wagons• Purchase of new tippler• New ship unloader

BULK AND BREAK BULK CAPACITY

Break Bulk 8 million tonnes per annum

Bulk 20 million tonnes per annum

Berths 13

Draft 15.5m (average)

Cargo Mineral bulk, project cargo

RICHARDS BAY TERMINAL9

Commodity: Break Bulk and Agri BulkLocated in the historic Maydon Wharf area, Maydon Wharf Terminal handles both agri bulk and break bulk.

Did you know? Maydon Wharf MPT recently handled 114 361 tons in one month, its fastest vessel unload time. The terminal has achieved the 4 million milestone on the handling of woodchip. The woodchip operation in the Port of Durban is the first wood chipping export facility in South Africa that successfully met all criteria stipulated in the Environmental Impact Assessment (done prior to construction).

Market Demand Strategy (MDS) investment• Acquisition of two mobile harbour cranes• New substation built in preparation for increase of reefer capacity to

200• Installation of batch scales for shed 7A• Extension of K-block stack to include five rail lines• Sheds resurfaced and strengthened

AGRICULTURAL BULK CAPACITY

Capacity 1.4 million tonnes per annum

Berths 3

Drafts 9.6m - 10.3m

Cargo Wheat maize, soya bean meal and animal feed, woodchips

BREAK BULK CAPACITY

Capacity 1.2 million tonnes per annum, 100 000 TEUs

Berths Access to 15 berths with a footprint aligned to 4 berths (MW9 to MW12)

Draft 9.6m - 10.3m

Cargo Complex mix including project cargo, neo-bulk, timber, steel coils and other steel profiles

MAYDON WHARF TERMINAL74

Commodity: RoRo, Break Bulk, Agri BulkThe East London Terminal (MPT) consists of a RoRo terminal, the largest grain silo on the South African coastline, break bulk and containerised cargo facilities. Established in 1963, the terminal currently employs over 120 people.

Did you know? The RoRo facility has retained its NOSCAR status for the last 8 years.

Market Demand Strategy (MDS) investment• Mobile harbour cranes

EAST LONDON TERMINAL

COMBI CAPACITY

Capacity Break bulk - 0.21 million tonnes per annum

Containers 90 000 TEUs

Berths 5

Draft 8.9m (average)

Cargo Break bulk and containerised cargo - including motor vehicle components, chemicals, textiles, fruit, sugar, timber, scrap

AUTOMOTIVE CAPACITY

Capacity 139 000 fully built units

Berths 2

Features Two dedicated berths, multi-level facility with 2 900 undercover and 1 000 open parking bays, rail connectivity, 26 420m2 quayside assembly area

AGRICULTURAL BULK CAPACITY

Capacity 0.76 million tonnes per annum

Berths 2

Features Specially designed grain silo

5DURBAN CONTAINER TERMINALS6

PIER 1: Commodity: ContainersTransnet’s Durban Container Terminal Pier 1 (DCT: Pier 1) was originally a multi-purpose terminal which was converted to a container terminal in 2007. Pier 1 accounts for almost one fifth of the TEUs handled by Durban Container Terminal – South Africa’s busiest port.

Did you know? DCT: Pier 1 is an indirect operation utilising RTGs (Rubber Tyred Gantries) and haulers to load and unload. The terminal uses NAVIS SPARCS N4 – a world-class terminal operating system.

Market Demand Strategy (MDS) investment• 2 912m2 Central Building Facility

PIER 2: Commodity: ContainersAfrica’s biggest and busiest container terminal, DCT: Pier 2 ranks among the top in the world and recently pioneered a world-class rail dual cycle operation on the container planning system NAVIS SPARCS N4.

Did you know? DCT: Pier 2’s new ZPMC tandem lift Ship-to-Shore cranes are the biggest in the southern hemisphere. They can lift 2 x 40 foot containers at once or 4 x 20 foot containers.

Market Demand Strategy (MDS) investment• Purchase of 7 new tandem lift Ship-to-Shore cranes• 13 new eco-friendly diesel/electric Straddle Carriers (twin-lift

capabilities)• 2 new Terex Rail Mounted Gantry Cranes

CONTAINER CAPACITY

Pier 1 Pier 2

Capacity 0.7 TEUs 2.9 TEUs

Berths 2 6

Draft 12.5m 16m

Commodity: Containers, RoRo, Mineral BulkPort Elizabeth Terminal celebrated 50 years in operation in May 2013 having commenced operations in 1963. It’s now the largest exporter of manganese in the country, and aims to be the largest globally within the next six years.

Did you know? The Port Elizabeth Terminal was ranked the highest in Africa for moves per hour between January and March 2013 by the world’s largest ocean carrier and container shipping company, Maersk Line. The accolade is a result of measured efficiency when counting the number of containers handled per hour which impacts directly on vessel turnaround time.

Market Demand Strategy (MDS) investment• Break bulk equipment to optimise operational efficiencies

PORT ELIZABETH TERMINAL

BULK AND BREAK BULK CAPACITY

Capacity Break bulk 0.9 million tonnes per annum Bulk 5.1 million tonnes per annum

Berths 3

Drafts 11m

CONTAINER CAPACITY

Capacity 400 000 TEUs

Berths 2

Draft 11m

Features 4 Ship-to-Shore gantry cranes, 6 haulers and 14 trailers, 1 empty container handler, 25 one-over-two straddles

AUTOMOTIVE CAPACITY

Capacity 158 000 fully built units

Berths 1

Cargo New and second hand vehicles and high and heavy cargo

Features 5 000 parking bays, car wash facilities, rail connectivity

31 2

| 3534 |33 |

CONTAINER CAPACITY Current Phase 2

Capacity 400 000 TEUs 2.3m TEUs 800 000 TEUs (on project completion)

Berths 2 4

Draft 16.5m 16.5m

Page 19: IT ALWAYS SEEMS IMPOSSIBLE - Transnet · NELSON MANDELA 1918 - 2013. With the discovery of the rare gems in the Cape Colony and ... Engineering National Ports Authority Port Terminals

PORT OF CAPE TOWN PORT OF PORT ELIZABETH AND NGQURA

36 |

OUR 10 YEAR CAPACITY PLAN

As part of Transnet’s Market Demand Strategy, our terminals are undergoing a major programme of investment to boost handling capacity. This is being achieved through the acquisition of new equipment, infrastructure upgrades and skills training.

| 37

CONTAINER CAPACITY

DBN MPT

DBN MW

RBY MPT

EL MPT

Cap

acit

y - M

illio

n TE

U

0

2

3

4

8

10

2012/13

0.23

0.07

0.02

0.09

2013/14

0.23

0.09

0.02

0.09

2014/15

0.23

0.09

0.02

0.09

2015/16

0.23

0.09

0.02

0.09

2016/17

0.23

0.09

0.02

0.09

2017/18

0.23

0.09

0.02

0.09

2018/19

0.23

0.09

0.02

0.09

2019/20

0.23

0.09

0.02

0.09

2020/21

0.23

0.09

0.02

0.09

2021/22

0.23

0.09

0.02

0.09

2022/23

0.23

0.09

0.02

0.09

2023/24

0.23

0.09

0.02

0.09

Additional equipment to support 2 new

mobile harbour cranes for the Maydon Wharf

terminal

DCT Pier 2

DCT Pier 1

DBN MPT

Cap

acit

y - M

illio

n TE

U

0

2

3

4

8

10

2012/13

2.10

0.82

0.23

2013/14

2.25

0.68

0.23

2014/15

2.30

0.68

0.32

2015/16

2.00

0.68

0.32

2016/17

2.00

0.68

0.32

2017/18

2.00

0.68

0.32

2018/19

2.00

0.68

0.32

2019/20

2.38

145

0.32

2020/21

2.90

145

0.32

2021/22

2.90

2.00

0.32

2022/23

2.90

2.00

0.32

2023/24

2.90

2.00

0.32

2 new mobile harbour cranes, Maydon Wharf

terminal

Pier 1 Ph 2: 2 berths completed,

stack area for 2nd berth

Completion of the North Quay

berth and length deepening

Pier 1 Ph 2: Both berths operational

Start of the North Quay berth and

length deepening

Maintenance, South Quay pavement

Pier 1 Ph 2: First berth and

backup area available

PORT OF DURBAN MULTIPURPOSE TERMINALS

CT

CT MPT

Cap

acit

y - M

illio

n TE

U

0

2

3

4

8

10

2012/13

0.80

0.09

2013/14

0.95

0.09

2014/15

0.90

0.09

2015/16

0.90

0.09

2016/17

0.90

0.09

2017/18

130

0.09

2018/19

130

0.09

2019/20

130

0.09

2020/21

130

0.09

2021/22

130

0.09

2022/23

130

0.09

2023/24

130

0.09

Increase in berth length

Pavementrehabilitation

Additional cranes and equipment to make a fleet of 8 quayside cranes

Ngqura

PE

Cap

acit

y - M

illio

n TE

U

0

2

3

4

8

10

2012/13

0.40

0.80

2013/14

0.40

0.80

2014/15

0.40

143

2015/16

0.40

150

2016/17

0.40

150

2017/18

0.50

150

2018/19

0.50

150

2019/20

0.50

150

2020/21

0.50

185

2021/22

0.50

185

2022/23

0.50

185

2023/24

0.50

185

NCT 3rd berth commissioned

NCT Phase 2b completed

NCT Berth 1 and 2 completed

Introducing 4 high straddles

Page 20: IT ALWAYS SEEMS IMPOSSIBLE - Transnet · NELSON MANDELA 1918 - 2013. With the discovery of the rare gems in the Cape Colony and ... Engineering National Ports Authority Port Terminals

BULK AND BREAK BULK CAPACITY

RCB Bulk

RCB Coal

RCB MPT

0

10

20

30

40

50

60

70

80

90

100

Cap

acit

y - M

illio

n tp

a

2012/13

21

3.5

8.7

2013/14

22.2

3.5

8.7

2014/15

21.8

3.5

8.7

2015/16

23.1

3.5

8.7

2016/17

23.1

3.5

8.7

2017/18

23.1

3.5

8.7

2018/19

23.1

3.5

8.7

2019/20

23.1

3.5

8.7

2020/21

23.1

3.5

8.7

2021/22

23.1

3.5

8.7

2022/23

33.8

3.5

8.7

2023/24

36.6

3.5

8.7

RICHARDS BAY

Additional storage for Chrome GP3

and adjacent area

Additional storage for Chrome

CD West

RBEP capacity realised

38 |

SAL Iron Ore

CPMPT

SAL MPT

2012/13

60

0.6

3

2013/14

60

0.6

3

2014/15

60

0.6

3

2015/16

60

0.6

3

2016/17

60

0.6

3

2017/18

60

0.6

3

2018/19

60

0.6

3

2019/20

60

0.6

3

2020/21

60

0.6

3

2021/22

72

0.6

3

2022/23

72

0.6

3

2023/24

82

0.6

3

WESTERN CAPE

0

10

20

30

40

50

60

70

80

90

100

Cap

acit

y - M

illio

n tp

a

Saldanha Iron Ore expansion phased

approach

Saldanha Iron Ore expansion realised

Page 21: IT ALWAYS SEEMS IMPOSSIBLE - Transnet · NELSON MANDELA 1918 - 2013. With the discovery of the rare gems in the Cape Colony and ... Engineering National Ports Authority Port Terminals

Kingsmead Office Park, Stalwart Simelane Street, Durban, 4001P O Box 10124, Marine Parade, 4056T +27 31 308 8333 • F +27 31 308 8323www.transnet-tpt.net